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Bitcoin has suffered a defeat in the past few months – losing nearly half of its value after surpassing $ 60,000 in mid-April – but it is back on the mend. With the price hovering around the $ 40,000 mark, some cautious investors have jumped on the cryptocurrency train again. Talking heads are pondering the value of bitcoin as a hedge against inflation, or even as a component of your retirement account … although the tax implications warrant close scrutiny.
Read on Forbes Get the latest personal finance news ranging from cryptocurrency glitches to lumber prices and tax breaks for kids (and more).
Appetite for retirement risk
Crypto exchange Coinbase has announced a new partnership that allows some clients to invest up to 5% of their retirement funds in over 50 cryptocurrencies, including bitcoins. Sounds risky? So says a senior policy expert at AARP, warning that cryptocurrency “definitely not suitable for retirement investment.“Biden’s budget plan includes another concern for some wealthy retirees: a proposed capital gains tax increase that would implemented retroactively. (This looks legitimate, but whether Congress will really accept it is another matter.) Author Richard McGuhee notes that the pandemic has also increased economic pressure on vulnerable older workers who cannot afford to retire, and suggests addition of “Bureau of Older Workers” to the Ministry of Labor as one of the possible solutions.
Loans for children
Parents, listen: The IRS has just released a new FAQ the recently (and temporarily) extended child tax credit, and an online tool to contact eligible parents who do not normally file tax returns. (Parents can get a loan of $ 3,000 for each child ages 6-17 and $ 3,600 for each child under 6; half of the loan can be paid in monthly cash advances starting July 15th.) Considering switching for cryptocurrency? Author Guinevere Moore explains how to avoid 10 common tax mistakes that are made when reporting (or not reporting) cryptocurrency transactions to the IRS.
New Graphic: Portfolio Alert – Is Inflation Really Returning Or Has It Just Started?
A source: Statista
Bitcoin’s price is like a dizzying ride to a theme park, but hedge fund billionaire Paul Tudor Jones says cryptocurrency is a “reliable” inflation hedge and “a way to invest in confidence.” Sports betting is another very risky investment opportunity, but the founders of DraftKings see a path to profitability if more states legalize their business. Just don’t buy Iron Titanium –Cryptocurrency Backed by Mark Kubinets Drops To Zero on Tuesday, signaling the upcoming volatility of competing tokens.
The much talked about soaring the price of lumber fell by more than 40% after a peak in May, indicating that the economy – well, commodities at least – could return to the status quo. Nonetheless, widespread price increases continue to alarm inflation critics. To their chagrin, the Fed has just indicated that it will not raise interest rates until the end of 2023. here are some possible reasons for waiting. Although 26 states (and their number continues to grow) have already announced plans to drop the $ 300 federal unemployment premium, Goldman Sachs predicts that labor shortages will continue most of the time before benefits expire in each state, early September.
The current moratorium on student loan payments expires on September 30th. There is a glimmer of hope that the date will be extended, however, borrowers should still prepare for repayments in October. Vaccinated and yearning to return to the world? Sorry you’re not alone – nearly nine out of 10 Americans plan to travel in the next six months, and A Forbes Advisor shares tips on how to prepare for your vacation and hopefully outsmart the masses.